Gujarat High Court

Additional compensation under Section 30(3) must be computed on market value including the multiplication factor.

KURAIBEN MALABHAI HAMIRBHAI CHAVDA(DECD.)THROUGH LH. CHAVDA BHAVESHBHAI ARSHIBHAI vs COMPETENT AUTHORITY AND SPECIAL LAND ACQUISITION OFFICER

Gujarat High CourtJUDGMENT: April 22, 20263 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioners are landowners whose lands were acquired under the National Highways Act, 1956. An award was passed on 23.08.2017 calculating the market value by applying a multiplication factor of 2.

Source reference: para. 1

However, when granting the 12% additional compensation under Section 30(3) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 ("2013 Act"), the authority only used the "base market value" (pre-multiplication) instead of the total market value derived after applying the multiplication factor.

Source reference: para. 2

The petitioners approached the High Court seeking the deficit in additional compensation, interest under Section 80, and benefits under the Second and Third Schedules of the 2013 Act.

Source reference: para. 4
02

Issues

1. Whether the additional compensation of 12% under Section 30(3) of the 2013 Act should be computed on the market value after applying the multiplication factor 2 as provided under Section 26(2).

Source reference: para. 3 / para. 7 of cited judgment

2. Whether the petitioners are entitled to statutory interest under Section 80 of the 2013 Act on the unpaid portion of additional compensation.

Source reference: para. 8(ii)

3. Whether the petitioners are entitled to Rehabilitation and Resettlement benefits under the Second and Third Schedules of the 2013 Act despite the delay in filing the petition.

Source reference: para. 4 / para. 18 of cited judgment
03

Law Applied

The court applied Section 26 and Section 30(3) of the 2013 Act, interpreting "market value" as the final value determined after applying the multiplication factor prescribed in the First Schedule.

Source reference: para. 101-103 of cited judgment

It relied on the definition of "market value" in Section 3(u) and the principles of statutory interpretation that the same expression must bear the same meaning throughout the statute.

Source reference: para. 97-101 of cited judgment

The court followed the precedent of Union of India v. Tarsem Singh [(2019) 9 SCC 304] and NHAI v. P. Nagaraju [(2022) 15 SCC 1], which extended 2013 Act benefits to National Highway acquisitions.

Source reference: para. 5 of cited judgment

It also applied Section 80 of the 2013 Act regarding interest on unpaid compensation.

Source reference: para. 116 of cited judgment
04

Reasoning

The Court reasoned that "market value" under Section 26 is the end product of all components, including the multiplication factor for rural areas under Section 26(2). Thus, the adjective "such" in Section 30(3) refers to this total computed value, not merely the base value under Section 26(1).

Source reference: para. 101-105 of cited judgment

To hold otherwise would ignore the legislative intent to compensate for inflation during the pendency of proceedings.

Source reference: para. 109-112 of cited judgment

Regarding interest, the Court held that since the full compensation was not paid at the time of the award, interest under Section 80 is mandatory, though limited to three years due to the petitioners' delay in approaching the court.

Source reference: para. 116 of cited judgment

However, claims for Rehabilitation and Resettlement (Schedules II and III) were denied based on the principles of estoppel and acquiescence, as the petitioners failed to raise these claims during the 2015-2016 acquisition process.

Source reference: para. 19 of cited judgment
05

Holding

The Court partly allowed the petition. It held that the petitioners are entitled to 12% additional compensation computed on the market value including the multiplication factor of 2.

The Court directed the payment of statutory interest under Section 80 at 9% and 15% for a period of three years from the date of the award. The prayers for benefits under the Second and Third Schedules were rejected due to delay and laches. The Competent Authority was directed to pass the modified award within six weeks.

Source reference: para. 8(ii), 8(iii), 17 of cited judgment
Gujarat High Court

Original Court PDF

KURAIBEN MALABHAI HAMIRBHAI CHAVDA(DECD.)THROUGH LH. CHAVDA BHAVESHBHAI ARSHIBHAIvsCOMPETENT AUTHORITY AND SPECIAL LAND ACQUISITION OFFICER

Gujarat High Court · April 22, 2026

Click to open original judgment

Original judgment, available to read, download and summarize on LawLens.in

Click to open original judgment